A Stock Produced Returns of 16 Percent,9 Percent,and 21 Percent

question 18

Multiple Choice

A stock produced returns of 16 percent,9 percent,and 21 percent over three of the past four years,respectively.The arithmetic average for the past four years is 10 percent.What is the standard deviation of the stock's returns for the four-year period?

• A)6.82 percent
• B)8.54 percent
• C)9.09 percent
• D)10.83 percent
• E)11.75 percent

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Definitions:

Activity-Based Accounting System

An accounting method that allocates costs to specific activities, providing detailed insights into how resources are consumed.

Decentralized Segments

Parts of an organization that operate independently with their decision-making, often allowing for greater responsiveness to local markets or conditions.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Operating Cash Flows

Cash generated from a company's normal business operations.